Taxi and Private-Hire Drivers: The 60% Expense Deduction

Key steps and distinctions

The 60% ratio applies to individual taxi and private-hire drivers whether full-time, part-time or casual. It does not apply to a partnership operating ride-hailing and car-rental businesses. If a driver earns both taxi and private-hire income in one year, use the same expense method for both. Pre-filled driving income normally receives the automatic deduction; otherwise choose the taxi/private-hire-driver business category. Actual expenses can be used instead, but private use must be excluded or apportioned, for example by mileage. Potential deductions include booking-service fees, licence renewals, business phone costs, rental, fuel, insurance, parking and repairs. Car purchase cost and COE, initial vocational-licence acquisition costs, private expenses and fines are not deductible under the listed examples; private-hire-car purchase cost does not qualify for capital allowances. Proper business losses solely from earning driving income may be carried to the same trade in other years, but cannot offset unrelated income. Keep records even when using the fixed ratio. This PDF retains older refiling and portal-menu instructions; use its expense principles together with the current filing guidance rather than assuming the historical screen sequence is unchanged.